Last year at a Real Estate Deal Making Symposium and Syndication Seminar program, the audience was treated to an extraordinary speaker who demonstrated, using real life examples, why good contracts are so critically important. Our presenter, Larry Rothstein, has put the majority of his presentation into words so that people who were not in attendance could benefit from those insights. I share it with you here and hope that you enjoy it.

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If you look at the individual investors that participate on Wall Street, only a tiny handful can take down a whole company all by themselves. There are a few billionaires who can but they generally don't want to, and typically prefer to share the risk with other people. For this reason, corporations have been organized with shares of stock that are sliced up so that dozens, hundreds, thousands or tens of thousands of investors can participate in the profit-seeking activities of our capitalistic country.

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Does the little guy stand any chance anymore? Is anyone looking out for us?

Probably not. The world has become pretty unfriendly to entrepreneurs and self employed people so we have to take care of ourselves. Just keep your eyes wide open when it comes to the management of your financial resources. Understand how the game really plays.

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Living through the stock market roller coaster has been difficult – in fact, it is paralyzing. I am so focused on it that I am having trouble concentrating on work that I can actually control. Ironically, the chaos of the week has made one issue crystal clear for me.

The more I understand the stock market, the more I realize that I don’t get it at all.

Most individuals have their money in the stock market because their retirement accounts force them into the market. Those funds are forced into the market because the companies that manage those funds are stock market companies. A coincidence? The stock market companies supply pension plan participants with a small slate of stocks and mutual funds to choose from. They don't like to call it a slate because that increases their liability in case something goes wrong. But in effect, when you are provided with two, five or seven choices, it is basically a menu that somebody, who pretends to care about your money as much as you do, has provided to you so you can make a simple choice.

Most people think that they live in a self-directed world because they are able to pick the investment vehicle for their capital. But could this be anything further from the truth? In reality, you are not self-directing when you pick from a slate with investments that yield 2% or 3%, and maybe stretching it into really crazy territory, up to 5% annually. It doesn't sound like self-direction to me if you have to be in the stock market at this crazy time and you don't feel good about it. If you would rather be in commodities, real estate or some other asset class, you have to take charge. Do you want real self-direction? So do we.

The entrepreneurial management team of my company has come up with a mechanism for delivering true self-direction to pension plans and IRA funds. We work with CPAs and pension plan administrators that convert the restricted, “cookie cutter” plans into opportunities for true self-direction.

It is the entrepreneurs in our society who always solve the big problems and allowing people the freedom to manage their money in a way that is suitable to their personal style and risk temperament will be no exception. Entrepreneurs will help consumers to solve this problem too, helping investors to break free from the shackles of the big wire houses on Wall Street.

We will be sharing strategies in this area, but for a “heads up” on how we are working with retirement assets, please be in touch with me.

If you have an opinion or thought on this topic, please write a comment in the form below. Share this blog with your friends. Thank you for being one of our loyal readers. We appreciate you and are rooting for your success.

Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenues and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and is an astute investor. Joel is CEO of Bullseye Capital , a full-service real estate company supporting owners and buyers of real estate assets with brokerage, leasing, property management, and mortgage services. Joel is also the founder of the Bullseye Capital Real Property Opportunity Fund, LLC which is an investment company that acquires distressed real estate by working with accredited investors.

A leader in real estate syndication, we offer seminars to assist others in acquiring the skills needed to raise syndicate capital to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether single family, multi-family, commercial, or anything else. For more information and complete details, please go to http://www.syndicatefast.com/.

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Question from a Reader:
I’m signing a note for 60% of the purchase price of an apartment building and I am putting together the syndication. How much is my guarantee worth?

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The signature line from one of my favorite movies, Law Abiding Citizen, is "you can't fight fate". I'm not a fatalistic person and certainly don't subscribe to that philosophy when it comes to living my life. But, I do believe that we all make our own luck and that luck can be something that we control depending on how we lay out the cards.

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I'm regularly asked by people who get involved in our real estate syndication and capital raising program if they can simply get the forms and fill out the securities documentation on their own. I am very quick to point out this is a terrible idea and for that reason, we do not provide forms for our attendees to fill out by themselves. Some people may think I'm holding information back or that I just want the people to pay more fees for the attorney's benefit, but this is not so at all. There are several critical reasons why we don't give out forms. More on Can’t We Have the Forms?

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This morning at the health club, I ran into one of my long time friends, and I asked him if what I read in the newspaper was true. The paper reported that the bank where he is chairman was sold to a much larger institution. He confirmed that it's true, and needless to say, a bunch of his cash is going to be made available to him in the near future. I asked him what he planned to do with some of that cash, and he told me he was planning to get into the short-sale game and start finding houses that he could buy, fix, and flip — or hold – depending on the circumstances.

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Real Estate syndication is by far the most profitable aspect of the real estate industry. The reason is that it encompasses all the other areas including brokerage, lending, ownership, management and more. Each month, I host two Q&A teleconferences to help experienced people in the real estate business attain success in syndication. And with every call, I find there are two groups of people. There are those who are properly organized and ready to get started on the right path to real estate syndication. And then there are those who are having trouble getting out of their own way.

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